Chapter 14 Flashcards
A BOP provides each of the following except:
Select one:
a. Peak season provisions
b. Extra Expense coverage
c. Coinsurance provisions
d. Business Income coverage
The BOP is a simplified version of the BPP that is intended for sale to the unsophisticated owner of a small business. The BOP removed the Coinsurance Clause Requirement and then added Business Interruption Insurance in the form of both Business Income and Extra Expense. And, to remove the burden of sending in monthly reporting forms to adjust for fluctuating inventory, the BOP has a simple 25% increase in the personal property coverage to take care of Peak Season inventory changes. So, what is missing from the BOP (fortunately) is that confusing Coinsurance Clause.
The correct answer is: Coinsurance provisions
